By the end of 2023, Ford is anticipated to have lost $3 billion. Electric vehicle (EV) manufacturing and sales are the main areas of loss. Ford announced a separation in operations in March 2022. The research and manufacture of EVs like the Mustang Mach-E SUV and the F-150 Lightning truck will be the focus of one division, while conventional gasoline-powered vehicles will be the focus of another division.
The F-150 Lightning, the first electric truck on the market, is still available to order on the Ford website, which also promotes the advantages of EVs. 320 miles of range between charges, a powerful towing capacity, and the possibility to use the truck as a backup power source for your home during power outages are a few of these benefits.
Customers’ faith in Ford’s electric vehicles seems to be waning. Many Lightning orders have been canceled, most likely as a result of price rises. Ford predicted a selling price of under $40,000 in 2021, while current costs for the car surpass $60,000. Ford provided an explanation for the increase, citing an increase in material costs since the initial estimate was made public.
Ford put a temporary suspension to the production of the F-150 Lightning trucks in February 2023 as a result of an unexplained potential battery problem that was found during pre-delivery quality tests. It was okay to sell vehicles that were already on a sales lot without holding them back. The potential battery problem’s specifics remain a secret.
Ford just recently made its first quarter profits and divisional breakdown public. Before interest and taxes, losses on electric vehicles came to over $700 million. EV deliveries in the first quarter of 2023 totaled just 12,000 units. According to these figures, Ford lost an estimated $53,000 on each EV sold.
Losses show that consumers are worried. Price increases, production shutdowns, protracted delivery times, and efficiency and safety issues seem to be at the top of the list.